Building a machine-learning model to sharpen planning lead times

Outcome
ML-driven inventory reduction via lead-time accuracy
Sector
Retail

The context

National industrial products distributor. Planning lead times didn't reflect real supplier performance across a large import and domestic supplier network — inflating safety stock and inventory across the distribution centres.

What we did

  • Assessed the inventory benefit achievable with improved lead-time accuracy
  • Built a cost-effective machine-learning prediction model for planning lead times — analysing the import and domestic supplier network, DCs, product categories and inbound supply
  • Implemented model processes to refresh planning lead times on a semi-regular basis

The results

  • More accurate planning lead times feeding replenishment
  • Quantified inventory reduction benefit case
  • Repeatable, low-cost model process owned by the client

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